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Finance update: investment earnings, business licenses and audit timeline presented to Brentwood committee
Summary
An investment advisor reported about $184,218 earned year-to-date and a total of roughly $3.6 million earned since the city’s investment relationship began; finance staff reported early-year revenues and said auditors will present results to the committee in May and to the board in June.
Brad, the city’s investment advisor, told the Brentwood Ways and Means Committee that year-to-date investment earnings total about $184,218 and that cumulative earnings from the start of the city’s investment relationship amount to roughly $3.6 million.
“These are all government bonds,” Brad said, explaining that the city’s laddered, fixed-rate securities mean the portfolio’s semiannual payments and principal at maturity are not affected by short-term market swings. He described an average yield on the securities the city holds of about 4.79% and an approximate monthly income pace near $61,000.
Finance staff reported that occupational business-license receipts are a recurring early-year revenue source and were tracking strongly through February. The finance director noted mixed sales tax signals: February sales tax was down about 1% while use tax showed a larger increase, suggesting a relative shift toward online purchases. Staff said they will continue monitoring monthly collections.
On the audit timeline, staff said the auditors have completed most testing, will present findings to Ways and Means in May, and are scheduled to present for board approval in June. Department heads have provided requested documentation and testing has proceeded on schedule.
Why it matters: The investment report confirms the portfolio’s current yield and supports budget planning; early-year receipts and the audit timeline set the schedule for final FY2024 financial statements and related budget amendments.
What’s next: Staff will continue monthly monitoring of revenues, proceed with scheduled audit deliverables and reinvest maturing securities according to the laddered strategy unless liquidity is required.
